Etsy, the online marketplace known for its unique and handmade items, is undergoing a significant restructuring that includes cutting 225 jobs, or 11% of its workforce. The company’s CEO, Josh Silverman, explained that the job cuts were necessary due to stagnant sales over the past two years. Despite the unfortunate timing during the holiday season, laid-off employees will continue to be paid until at least January 2nd.
The goal of these job cuts is to transform Etsy into a more focused and agile company. The company expects to spend up to $30 million on severance payments, employee benefits, and related costs. Once the restructuring is complete in the first quarter of next year, Etsy’s core marketplace team will consist of approximately 1,770 employees.
Etsy is an online platform that allows independent sellers to create their own shops and sell unique items that are not typically found in traditional retail stores. The company is listed on the Nasdaq stock exchange in New York and is currently trading at around $84 per share. Its largest shareholders include financial institutions such as Vanguard Group and BlackRock.
Josh Silverman, who has previously worked at companies like eBay, Skype, and American Express, has been the CEO of Etsy since 2017. The company was originally founded in 2005 by Rob Kalin, Chris Maguire, Haim Schoppik, and Jared Tarbell, but none of them are currently involved with the company. In August, Etsy faced criticism from sellers who complained about money being withheld. The company later announced a change in its policy to decrease the amount of money held for sellers, although specific details were not provided.
Overall, Etsy’s restructuring aims to streamline operations and improve its financial performance in a challenging market environment.